Odfjell posted its 4Q25 results yesterday in the evening, weaker on quarterly basis and somewhat below our and consensus estimates. Furthermore, the company expects 1Q26 results to be even below 4Q25. We will make negative changes to our estimates post the report.

We and consensus anticipated better results

Odfjell’s strong safety performance continued in 4Q25. TC earnings ended at USD 168m weaker compared to USD 173m in 3Q25. TCE/day was USD 27,978, also weaker QoQ. The company reported EBIT of USD 53m, while both we and consensus expected slightly better figure. A net result came at USD 38m in 4Q25, compared to USD 43m in 3Q25. Contracts concluded for two 35,000 dwt newbuildings to be delivered to Odfjell on long-term time charter in 2028 and 2029. The Board approved a dividend of USD 0.50/sh. based on net adjusted result for 2H25.

1Q26 results expected to be lower QoQ

The geopolitical environment remains uncertain and will continue this trend into 2026. Significant newbuilding deliveries are expected in all tanker segments, but swing tonnage is expected to stay at low levels as long as crude and clean tanker earnings remain healthy. A significant part of Odfjell’s contract base has been renewed through peak renewal season with the lower adjusted average rates in effect from 1Q26. The stronger chemical tanker spot market should contribute positively to rates in the quarter, as also swing tonnage is expected to remain at low levels. Overall, the company guides 1Q26 results to be below 4Q25 and we will adjust our estimates accordingly.
Source: Norne Research